RE: Profit Stops

[Neal Hughes <neal@xxxxxxxxxxxxx>]

Peter,

When I started with Fibs, I read just about everything..

There is a ton of intellectually interesting, entertaining,
poetic, mystical, stuff about Fibonacci.. Some of it
is so complex and theoretical there is no way to
figure out how to apply it in the markets.. Some of the
material seems as though it is written to intentionally
mystify! Some of it works some of the time but only
just enough to keep you interested..

I eventually settled for Joe DiNapoli's techniques, see
http://www.fibtrader.com  because they are
practical and make sense to me. Joe discards all the
confusing aspects, and presents a solid trading plan.

When I was newer to that stuff, I wrote a review on DiNapoli's
book, you'll find it on the above website somewhere.

I've since become a biased fan of these techniques,
and I present seminars on DiNapoli techniques. These
may not be the only Fib techniques that work, but they
are my preference.

I'm totally against trailing stops, for many reasons.
I'm usually entering the market exactly where those
with trailing stops are exiting. So they take the other
side of my trade.. Trailing stops generate horrible
slippage, and often get you out of the market at
the worst time..

-Neal.



At 05:52 PM 3/15/2001 -0500, Peter Gialames wrote:
>Do you have any good resouces on learning these Fib techniques?  I have
>always been intrigued by them, but never learned how to use them.
>
>Peter Gialames
>
>-----Original Message-----
>From: owner-metastock@xxxxxxxxxxxxx
>[mailto:owner-metastock@xxxxxxxxxxxxx]On Behalf Of Neal Hughes
>Sent: Thursday, March 15, 2001 4:22 PM
>To: metastock@xxxxxxxxxxxxx
>Subject: Re: Profit Stops
>
>
>
>Fibonacci techniques are excellent for this.
>
>The idea is to calculate  a profit objective so
>you exit before a pullback..
>
>-Neal.
>
>
>At 03:08 PM 3/15/2001 -0500, you wrote:
> >I wonder if people could comment on profit stops. It seems that I buy
> >stocks, the price increases, and then they fall down and I lose most of my
> >profits. Is it best to stick with a trailing stop or should a certain
>profit
> >% be used to take profits? What profit stop should be used?
> >
> >neo